U.S./Israel-Iran War: the Middle East On Edge
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1) Pre-Market Performance
U.S. equity futures were mixed, with technology-heavy contracts under pressure while Dow futures held slightly positive. Nasdaq 100 futures traded at 29,528.3, down 194.25 points or 0.65%; S&P 500 futures stood at 7,716.0, down 18.5 points or 0.24%; Dow Jones futures were at 52,192, up 10 points or 0.02%.
European equities were broadly lower as higher oil prices, French political and social unrest, and renewed caution toward technology shares weighed on sentiment. The FTSE 100 traded near 10,704.72, down 0.56%; France's CAC 40 was around 7,800.44, down 0.86%; Germany's DAX stood near 25,113.64, down 0.81%; the Euro Stoxx 50 fell about 0.98% to 6,084.37; and the Stoxx Europe 600 was down about 0.63% at 635.53.
In commodities and forex, crude oil remained the key cross-asset driver. Brent crude traded around $111.17 a barrel, up roughly 2.0%, while WTI crude futures were near $101.11, up $2.57 or 2.61%. Gold futures slipped to about $4,139.35, down $20.75 or 0.50%. The U.S. Dollar Index was slightly softer at 101.695, down 0.091 or 0.09%, while EUR/USD traded near 1.1217. The VIX hovered around 18.85.
2) Hot News
- AI-linked weakness returns to pre-market trading. Nasdaq futures lagged as investors again questioned financing costs and returns on artificial-intelligence infrastructure spending. CoreWeave fell about 3.1% and Nebius lost about 2.9% in pre-market trading, while Apple was down roughly 1% and Nvidia was slightly lower.
- Oil jumps on Middle East risk premium. Brent crude traded near a five-month high around $111 a barrel, while U.S. crude moved back above $100. Reports of attacks on Gulf shipping and Saudi infrastructure, alongside ongoing instability in Yemen and the broader region, kept energy inflation risks in focus.
- European markets retreat as France and technology weigh. The CAC 40, DAX and FTSE 100 all traded lower, with the Stoxx Europe 600 technology sector down more than 1%. French market sentiment remained fragile as investors assessed protests, curfews in parts of major cities and potential budget-policy complications.
- Earnings season becomes the main stock-specific driver. A heavy corporate-results slate is shaping early trading, with General Motors, 3M, RTX, Northrop Grumman, Halliburton and Hasbro moving on results or guidance. Netflix and SpaceX are scheduled to report after the closing bell.
3) U.S. Stock Focus
- General Motors — Q3 beat overshadowed by guidance reaction. General Motors reported third-quarter revenue of $50.0 billion, net income attributable to stockholders of $3.3 billion and adjusted EBIT of $4.1 billion. The board also approved a new $20 billion share repurchase authorization, but shares fell about 6% pre-market as investors focused on the narrowed full-year profit outlook.
- RTX — Raises 2026 outlook after strong quarter. RTX reported adjusted earnings of $2.26 per share on revenue of $25.0 billion, above analyst expectations. The company raised its 2026 adjusted EPS outlook to $7.65-$7.75 and lifted its revenue forecast to $97.0-$97.5 billion, helping the stock gain about 2.2% pre-market.
- GE Aerospace — Strong results, but shares slip. GE Aerospace posted adjusted EPS of $2.25 and adjusted revenue of $13.29 billion, both ahead of expectations, with commercial engines and services revenue up 21%. Despite raising its full-year outlook across key metrics, shares slipped about 1.4% pre-market.
- Halliburton — Earnings and revenue top forecasts. Halliburton rose in pre-market trading after reporting adjusted earnings of $0.60 per diluted share and revenue of $5.7 billion, above consensus expectations. The oilfield-services company benefited from stronger international demand, helping offset softer conditions in some regions.
- 3M — Expands Amazon relationship with warrant structure. 3M entered an expanded strategic commercial relationship with a wholly owned Amazon subsidiary and issued a warrant for up to 3,162,015 shares at $164.89 per share over seven years. The warrant represents more than $521 million of potential 3M common stock purchases, with vesting tied largely to Amazon payments for optical connectivity and data-center products.
- Qualcomm — Global job cuts planned after annual reviews. Qualcomm plans global layoffs as part of a "performance-focused reduction" following annual employee reviews, with notifications expected to begin in November. The announcement adds a cost-discipline angle to investor focus ahead of the chipmaker's next earnings update.
- Northrop Grumman — Raises guidance as backlog reaches record. Northrop Grumman reported third-quarter sales of $11.1 billion, up 7% from $10.4 billion a year earlier. Strong demand across military aircraft, missiles and defense programs helped lift backlog to a record level, and shares rose nearly 2% pre-market.
- Hasbro — Raises annual revenue outlook. Hasbro lifted its full-year revenue forecast, citing strong demand for digital games ahead of the holiday season. The update keeps investor attention on the company's higher-margin gaming and entertainment franchises, including digital extensions of major brands.
- Boeing — FAA certification of 737 MAX 10 expected. U.S. Transportation Secretary Sean Duffy is expected to announce that the Federal Aviation Administration has certified Boeing's long-delayed 737 MAX 10. The development would mark an important milestone for Boeing's largest 737 MAX variant and could improve visibility for airline delivery schedules.
- Netflix — Earnings due after the close. Netflix is scheduled to report quarterly results after the New York close, making it one of the day's key large-cap earnings events. Shares were indicated lower in pre-market trading, with investors focused on subscriber trends, advertising revenue momentum and margin guidance.
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